BTC Adoption Stages

Shaan outlines the three stages for a currency to become widely adopted:

1. Store of Value

• People must believe the currency holds value
• Willingness to hold onto it as an asset
• First and most crucial stage for adoption

2. Medium of Exchange

• Currency is widely accepted for transactions
• People trade it back and forth confidently
• Requires widespread belief in its value
• Hasn't fully happened with Bitcoin yet

3. Unit of Account

• Prices and debts are denominated in the currency
• Final stage of full adoption
• Occurs after widespread use as a medium of exchange

Bitcoin's Current Status

• Completing stage 1 (Store of Value)
• Majority now believes Bitcoin has value
• Evidenced by:
  • Price reaching $60,000
  • Ownership by wealthy individuals and institutions
• Not yet widely used as a medium of exchange
• Far from being used as a unit of account

Adoption Challenges

• Complexity of use for average people
• Need for simpler methods to buy and hold Bitcoin
• ETFs making Bitcoin more accessible to traditional investors
• Growing mainstream acceptance by financial institutions